PTE 2020-02: Self-Corrections, Retrospective Reviews & Penalties for Non-Compliance

Jason Roberts
Pension Resource Institute


John Faustino
Head of Fi360, a Broadridge Company

December 13, 2022

With the Prohibited Transaction Exemption 2020-02 (PTE 2020-02) now fully in effect, financial institutions have turned their focus on interpreting requirements and implementing policies to maintain compliance with its conditions. Self-corrections and retrospective reviews are at the top of the list of priorities. The former requires a detailed understanding of the penalties for engaging in non-exempt prohibited transactions – both under ERISA and the Internal Revenue Code. According to the final rule, any such corrections must be “specifically set forth in the written report of the retrospective review.”